I recently grasped an important truth: truly sophisticated investors don't play a one-directional money-making game.
Look at the current landscape — central banks are holding cash reserves to guard against economic recession, but what's the extreme on the other side? Rampant liquidity injection, with inflation following as a natural consequence. We're now living in the second half of this cycle.
Have you noticed? Gold prices are hitting record highs, and the gold-to-oil ratio is approaching historic ceilings. This is no coincidence. Using just 3% of your capital to allocate to commodities is essentially buying inflation insurance — oil price spikes at any time wouldn't be surprising, and gold continuing to surge is well within expectations.
This is true bidirectional thinking: holding cash is your trump card during economic recessions, while commodities become your fortress when liquidity floods the market. You win either way, and that's the real game rule of professional investors.
I recently grasped an important truth: truly sophisticated investors don't play a one-directional money-making game.
Look at the current landscape — central banks are holding cash reserves to guard against economic recession, but what's the extreme on the other side? Rampant liquidity injection, with inflation following as a natural consequence. We're now living in the second half of this cycle.
Have you noticed? Gold prices are hitting record highs, and the gold-to-oil ratio is approaching historic ceilings. This is no coincidence. Using just 3% of your capital to allocate to commodities is essentially buying inflation insurance — oil price spikes at any time wouldn't be surprising, and gold continuing to surge is well within expectations.
This is true bidirectional thinking: holding cash is your trump card during economic recessions, while commodities become your fortress when liquidity floods the market. You win either way, and that's the real game rule of professional investors.